In This Article:
Key Insights
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Institutions' substantial holdings in Princeton Bancorp implies that they have significant influence over the company's share price
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51% of the business is held by the top 11 shareholders
Every investor in Princeton Bancorp, Inc. (NASDAQ:BPRN) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 44% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's take a closer look to see what the different types of shareholders can tell us about Princeton Bancorp.
Check out our latest analysis for Princeton Bancorp
What Does The Institutional Ownership Tell Us About Princeton Bancorp?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Princeton Bancorp already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Princeton Bancorp's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Princeton Bancorp. Our data shows that Martin Tuchman is the largest shareholder with 10% of shares outstanding. With 8.1% and 5.4% of the shares outstanding respectively, AllianceBernstein L.P. and Andrew Chon are the second and third largest shareholders. In addition, we found that Edward Dietzler, the CEO has 0.7% of the shares allocated to their name.
A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.